E-4700, Disability Insurance Benefits

Revision 09-4; Effective December 1, 2009

Disability benefits are unearned income.

Some insurance policies pay benefits based on the period of time a person is disabled and not on the amount of medical expenses. These policies may be called "income maintenance" policies. Benefits from these policies are unearned income to the extent that they are not used to pay for medical expenses.

Disability benefits normally are paid to a person who has suffered injury or impairment. These payments may be from an employer, insurance or other public or private fund.

Determine the source of the benefit. If the source is covered by one of the unearned income items, such as Social Security or a private pension, use the procedures for that item.